Shares in Norcor Holdings, the British packaging group in which Jefferson Smurfit has built up a 29.95 per cent stake, jumped sharply on the London market after it emerged another packaging company, Linpac, now holds 10.5 per cent of Norcor.

Norcor shares closed up 7p on 87p sterling having hit 90p earlier in the day, as investors speculated that Smurfit and Linpac could become involved in a bidding battle for Norcor.

Norcor is now trading some 17p above the level at which Smurfit built up its 29.95 per cent shareholding and at last night's close of 87p, the British company has a market capitalisation of just over £24 million sterling.

Like Smurfit, Linpac has been building up a shareholding in Norcor for some time, and had over 6 per cent as of last February.